American newspaper believes that Russia has become the world's dominant country in grain.
(Baonghean.vn) - According to Bloomberg, Russia is confidently consolidating its dominant position in the wheat market. This is thanks to a record harvest and low production costs. In addition, there is no intense competition from other countries.
In a recent report, Bloomberg stated that the record wheat harvest for the second consecutive year solidified Russia's position as the world's number one exporter, and its dominance in the global market.
Deliveries are hitting record levels, Bloomberg said, as Russian traders “gradually overcome the financial and logistical difficulties” some of them faced when Russia began its military campaign in Ukraine.
Russia’s “overflowing grain” has been a blessing for wheat consumers, who have been hit by an inflation crisis and rising living costs, according to Bloomberg. Now, record supplies have sent wheat prices to their lowest in nearly three years.
“Russian wheat doesn’t have many competitors. Russia is the price-setter at the moment,” said Hélène Duflo, grain market analyst at Strategie Grains.
As oversupply drives down prices, Russia is trying to use its dominant position to set a floor.
However, the floor price is also another sign that the Kremlin is looking to tighten control over Russian grain exports to world markets.
International traders fled Russia earlier this year amid a wave of criticism against foreign companies, while Moscow continues to attract buyers from Africa and the Middle East.
Earlier this week, the US Department of Agriculture raised its forecast for Russian exports while lowering its forecast for global supplies, further underscoring Moscow’s dominance in the global wheat market.
Despite the ongoing uncertainty surrounding Ukraine's grain supplies, Russia's ample supplies help to mitigate any potential concerns, according to Alexander Karavaytsev, senior economist at the International Grains Council.
